SB 1329: Real property tax: valuation: active solar energy system.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

The California Constitution generally limits the maximum rate of ad valorem tax on real property to 1% of the full cash value of the property and defines “full cash value” for these purposes as the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment. Pursuant to constitutional authorization, existing property tax law excludes from the definition of “newly constructed” for these purposes the construction or addition of any active solar energy system, as defined, through the 2025–26 fiscal year, except as specified.

This bill would prescribe rules for the valuation of an active solar energy system under certain valuation methods, including a requirement that, under the income method, the assessor exclude from income the benefit from, among other things, renewable energy credits, as defined. By expanding the duties of local tax officials, this bill would impose a state-mandated local program.

Existing law requires the state to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.

This bill would provide that, notwithstanding those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. August 5, 2026August 5 set for first hearing canceled at the request of author.
2. July 1, 2026Read second time and amended. Re-referred to Com. on APPR.
3. June 30, 2026From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 2.) (June 29).
4. June 30, 2026June 29 set for first hearing. Placed on suspense file.
5. June 22, 2026From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.
6. June 4, 2026Referred to Com. on REV. & TAX.
7. May 27, 2026In Assembly. Read first time. Held at Desk.
8. May 27, 2026Read third time. Passed. (Ayes 27. Noes 11. Page 4483.) Ordered to the Assembly.
9. May 14, 2026Read second time. Ordered to third reading.
10. May 14, 2026From committee: Do pass. (Ayes 5. Noes 2. Page 4273.) (May 14).
11. May 12, 2026Set for hearing May 14.
12. May 11, 2026May 11 hearing: Placed on APPR. suspense file.